The Issue Of The Pricing Of Medium-term Notes For Private Enterprises

As an important part of Chinese financial market,the bond market has always provided support for various types of corporate financing.With the simplification of bond issuance approval procedures,the efficiency of bond issuance has been continuously improved,the scale has gradually expanded,and the bond market has become increasingly mature.As a typical medium and long-term debt financing tool,medium-term notes have,to a certain extent,met the demand of high-quality enterprises for flexible use of medium and long-term funds.Therefore,since listing,the scale of issuance has been continuously expanded.Private enterprises are an important part of China's economy.At present,China's private enterprises are characterized by large number,wide distribution and big differences.By studying the issuance pricing process and results of "17 New Town Holdings MTN003",this paper finds that even private enterprises with better qualifications still have a lower market subscription ratio and higher issuance interest rates.The article first analyzes the background and current situation of Xincheng Holding,the industry,private enterprise bonds and medium-term notes market,summarizes their respective characteristics,and provides support for the subsequent analysis.Secondly,it studies the internal and external environment during the issuance of the medium-term notes.The article comes to the conclusion that issuer has better qualification and solvency,and medium-term notes are the reasonable compensation for company's medium and long-term funds.Then,the article evaluate the rationality of bookeeping interval by analyzing the issuance pricing process of the medium-term notes,combining with the influencing factors.It is concluded that the reason for the low subscription intention of the issuance market and the higher issuance interest rate is mainly due to the market segmentation effect in the medium-term note market.The main reason for this effect is that recognition of the market for private enterprises is lower.In view of the problems and causes in the case analysis,the article proposes to introduce relevant policies from the aspects of guaranteeing high-quality private enterprises,promoting credit risk mitigation tools,enriching bond types,providing private enterprise financing guidance and creating a "competitive neutral"environment..The effect is to weaken market segmentation and enhance the market recognition of private enterprises.Based on the actual case,by analyzing the characteristics of the medium-term notes and the factors affecting the pricing of the medium-term notes,the article reflects the advantages of the medium-term notes as a medium-and long-term debt financing tool and also recommends that enterprises grasp the key issuance steps and lower the issuance rate under the premise of smooth issuance.From the results of the issuance,the article analyzes why the medium-term notes issued by high-quality private enterprises are not as good as those of non-private enterprises,and puts forward relevant suggestions.Using one case,from two perspectives,the article provides practical experience and policy recommendations for alleviating the financial pressure of private enterprises and solving the problem of financing difficulties for private enterprises.